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Investing.com - Piper Sandler maintained its Overweight rating and $72.00 price target on SL Green Realty (NYSE:SLG) despite the stock’s recent decline following political developments in New York City. According to InvestingPro data, SLG has fallen nearly 10% in the past week, though the stock still maintains an impressive 5.3% dividend yield with a 29-year streak of consecutive dividend payments.
SL Green shares fell 5.7% on Wednesday, compared to a 2.4% drop in the broader REIT sector and a flat S&P 500, after Zohran Mamdani emerged as the winner of the Democratic mayoral primary in New York City.
The research firm noted that November’s general election remains distant, with many potential changes possible before then, and expressed doubt that demand for premium office space had suddenly disappeared.
Piper Sandler highlighted several factors supporting its positive outlook, including potential increased appeal for incumbent Mayor Adams, continuing scarcity of premium office availability, and limited new supply expected for the next 5-10 years.
SL Green’s office REIT peers also experienced significant declines on Wednesday, with Boston Properties (NYSE:BXP) down 5.3% and Vornado Realty Trust (NYSE:VNO) falling 6.7%, according to the research note.
In other recent news, SL Green Realty Corp reported its first-quarter 2025 financial results, surpassing earnings expectations with an earnings per share (EPS) of -$0.30, better than the forecasted -$0.41. However, the company’s revenue slightly missed projections, coming in at $144.52 million compared to the expected $145.27 million. Evercore ISI has raised its price target for SL Green Realty from $66 to $74, maintaining an Outperform rating, while Piper Sandler continues to hold a positive outlook with an Overweight rating and a $72 price target. At SL Green’s recent annual meeting, eight directors were elected to the board, and several key proposals, including the approval of executive compensation and the appointment of Deloitte & Touche LLP as the independent accounting firm, were passed. The company remains focused on achieving a $1 billion disposition target and sees potential for upward revisions in guidance, with plans for significant office-to-residential conversions. Meanwhile, SL Green’s management has highlighted the scarcity of prime office space in Midtown, which is driving aggressive bidding from tenants and contributing to the expansion of net operating income cash margins.
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